Duran Manufacturing Uses a Process Costing System and Manufactures Its

question 120

Multiple Choice

Duran Manufacturing uses a process costing system and manufactures its product in three departments.Which of the following is NOT a way in which Duran can use the cost per unit of each process?

• A) Duran can look for ways to cut the costs when actual process costs are more than planned process costs.
• B) Duran needs to set the selling price to cover the costs of making the product and provide a profit.
• C) Duran can only use the cost per unit of each process if all units are fully completed at the end of the accounting period.
• D) Duran needs to know the ending balances in the following accounts: Work-In-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.

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Definitions:

Progressive Reforms

Initiatives and policies aimed at addressing social injustice, corruption, and economic inequality in the early 20th century United States.

Economic Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Civil Rights

The rights of citizens to political and social freedom and equality, often associated with movements to end discrimination and promote equal protection under the laws.

Underwood Tariff

A 1913 U.S. law that significantly lowered tariffs on imported goods for the first time since the Civil War and implemented an income tax following the ratification of the 16th Amendment.